Shortage of coal hits JITPL power plant

11 September 2017

The 1200 MW plant of Jindal India Thermal Power Limited (JITPL), located near Talcher coalfield, is facing an unprecedented coal crisis for over a year forcing it to shut down one of its unit eight months back. The plant gets about 7,000 to 8,000 tonnes of coal daily against the demand of 20,000 tonne to run the power plant in full capacity.

According to a senior official of the company, power plant has two 600 MW units and feeds power to mainly Indian railways and Odisha. Faced with acute coal shortage, it was forced to shut down one unit while another runs partially.

The plant sources coal from Kaniha and Talcher coalmines. Due to frequent strikes in Talcher coalfield, the supply has been erratic. Though the company has signed fuel supply agreement (FSA) with MCL under the linkage agreement with the Coal Ministry, it cannot draw coal due to lack of long term power purchase agreement (PPA). The PPA is essential to lift coal under linkage agreement.

The company’s coal problem was, however, aggravated after cancellation of coal block by court in 2014. Now the required coal is being sourced under auction route which has increased its cost. The company is making heavy loss as a result of low efficiency, high cost of coal and low tariff. In addition, the company is supplying power to Odisha at a cheaper rate of `one per unit as part of its obligation under the MoU.

Chairman-cum-managing director of MCL Anil Kumar Jha said JITPL wants more coal from Kaniha mines which is not possible.

The plant sources coal from Kaniha and Talcher coalmines but due to frequent strikes in Talcher coalfield, the supply has been erratic.Even as the company has signed fuel supply agreement with MCL under the linkage agreement with the Coal Ministry, it cannot draw coal due to lack of long term power purchase agreement which is essential to lift coal under linkage agreement. The company’s coal problem aggravated after cancellation of coal block by court in 2014

Source-newindianexpress

1 reply
  1. Sambit Sahu
    Sambit Sahu says:

    Sir , Make your own road to make a bye pass from village NTPC Kaniha . After that everything will clear . The amount of coal requirement will be fulfilled . Thank you .

    Reply

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